Renters’ Rights Bill : As a landlord are you prepared for the changes coming?
The Renters’ Rights Bill had its second reading in the House of Lords on February 4, 2025, marking a key milestone in its journey toward becoming law. It is expected to be enacted in spring 2025, so landlords should stay informed as these dates approach.
57% of landlords have said their biggest concern is increasing compliance requirements*, so we want to help you understand these proposed changes and be on hand to support you if needed.
Key Changes
The Renters’ Rights Bill proposes changes that will reshape the way tenancies work in England. Here’s a breakdown of the most important changes and what they mean for you:
1. The End of ‘No-Fault’ Evictions (Section 21)
The Renters’ Rights Bill will abolish Section 21 of the Housing Act 1988, which currently allows landlords to end tenancies without giving a reason. This is a significant shift in the law, designed to provide tenants with more stability and security.
- You can no longer evict tenants without providing a legal reason. This will likely make the eviction process longer, as landlords will need to rely on Section 8 grounds for eviction, which require valid reasons such as rent arrears or property damage.
- It’s crucial to familiarise yourself with the new grounds for eviction and be prepared for longer tenant turnover.
2. A New Tenancy System: The End of Fixed-Term Contracts
The Bill proposes the introduction of periodic tenancies. Fixed-term Assured Shorthold Tenancy contracts will be phased out in favour of rolling monthly agreements, giving tenants and landlords more flexibility.
- All new tenancies will be periodic. You will no longer be able to rely on fixed-term contracts, meaning tenants will have more flexibility to move out with just two months’ notice.
- While this may reduce the certainty of long-term tenancy, it gives you a more flexible way to manage your properties.
3. Rent Increase Restrictions
Under the Renters’ Rights Bill, rent increases will be restricted to once per year and must be accompanied by a two-month notice. Rent review clauses that allow landlords to increase rent during a tenancy will also be banned.
- You will only be able to raise rents once a year, and the increase will need to be justified by market conditions.
- Rent increases will be subject to greater scrutiny, and tenants can challenge unfair increases through the First-tier Tribunal.
4. The Decent Homes Standard
The Renters’ Rights Bill introduces the Decent Homes Standard to the private rental sector, which was previously only applicable to social housing. This will require landlords to ensure their properties meet specific standards of safety and habitability.
- You’ll need to ensure your properties meet the Decent Homes Standard, which includes ensuring there are no hazards, adequate repairs, and energy efficiency measures.
- Failing to meet these standards could result in legal action or fines.
5. A Property Portal for Landlords
The Bill will introduce a Property Portal, where landlords will need to register their properties. This portal will increase transparency in the rental market and allow tenants to check whether a landlord is compliant with legal obligations.
- You’ll need to register your properties on the new portal, providing information like safety certificates and proof that your property meets the Decent Homes Standard.
- This portal will also help local authorities monitor compliance and crack down on rogue landlords.
6. Pets and Property Modifications
The Bill will also make it easier for tenants to keep pets and request modifications to their rental property, such as installing shelves or making small alterations.
- You’ll no longer be able to unreasonably refuse requests from tenants to keep pets. However, tenants may need to provide pet insurance.
- You may also need to consider tenant requests for minor property modifications, but these requests can only be reasonably refused.
What Can Landlords Do Now to Prepare?
With these changes just around the corner, here’s how you can get ahead and prepare for the Renters’ Rights Bill:
- Stay Informed: Keep up to date with developments in the Renters’ Rights Bill, especially as the debate in the House of Lords approaches.
- Review Your Tenancy Agreements: Update your contracts to reflect the new rules around rent increases, tenancy lengths, and pets.
- Ensure Compliance: Make sure your properties meet the Decent Homes Standard and start preparing to register on the new Property Portal.
- Plan for the Future: Consider how these changes may affect tenant turnover and rental income and prepare to adapt your property management practices.
The Renters’ Rights Bill is set to overhaul the private rented sector, making it a more secure and transparent space for tenants, while presenting new challenges for landlords. By staying informed and preparing in advance, you can ensure that your properties remain compliant and profitable under the new laws.
Are you a landlord?
Download Our Free Landlord’s Guide to the Renters’ Rights Bill, which highlights how the new laws will affect you and your rental properties. Stay ahead of the changes and ensure your compliance with the upcoming reforms.
If you have any questions about the Renters’ Rights Bill or our Management service, please get in touch, we’re here to help.
This is intended as a guide, be sure to check the official government website for any updates regarding any news or changes to the Renters’ Reform White Paper.
* https://hub.rightmove.co.uk/landlords
